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FIVE GUYS
Five Guys operates fast-casual restaurants specializing in fresh-made hamburgers, french fries, and related accompaniments prepared according to proprietary recipes, ingredients, standards, and procedures. The franchise business model involves granting rights to franchisees to develop and operate one or more restaurants using the Five Guys System, including distinctive branding, decor, training, and supply requirements, typically under Development Agreements for multi-unit territories. The target market includes consumers seeking high-quality, customizable fast-casual American-style dining in retail shopping centers, urban locations, and select non-traditional venues like airports and arenas.
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Franchise Costs
6% royalty + 2% Creative Fund (up to 4%)
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataFIVE GUYS Franchise Analysis
What if the secret to Five Guys' enduring appeal—those endless topping options and hand-cut fries—came at a steep price for franchise hopefuls? Since franchising in 2002, this burger empire has ballooned into a fast-casual icon with hundreds of units, yet the lack of Item 19 disclosure leaves earnings a mystery. Dive deeper into the FDD and SBA records: do the expansion plans and loan stats signal a smart bet or a risky burger flip?
Item 7 lays out the hefty entry: initial investment spans $977,850 to $1,375,750, covering build-out in prime spots like shopping centers or airports, plus the $25,000 franchise fee. Ongoing fees hit 6% royalties plus 2% into the Creative Fund (potentially up to 4%), squeezing margins on those high-volume, customizable burgers. Without Item 19, no average revenue figures emerge, forcing buyers to scrutinize alternatives like the 74 SBA loans averaging $983,168—suggesting lenders back serious operators but at scale that matches the upper investment range.
System vitality shines through 945 franchise locations alongside 613 corporate ones, with total units climbing from 856 in 2023 to 875 in 2024 (+2% growth) and 48 projected new units. Yet 50 system transfers hint at resale activity, possibly from operators cashing out or recalibrating in a competitive fast-food landscape. For a buyer eyeing multi-unit development agreements, this data underscores steady but modest expansion—probe territory availability and non-traditional venue performance to gauge if Five Guys' quality-first model justifies the premium over burger rivals.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How FIVE GUYS Compares
Key Insights
- Higher investment than 82% of Fast Food franchises
- Higher than average SBA loan default rate in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
FIVE GUYS Current | $978K – $1.4M | $25K | 6.0% | 945 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
Fast Food Average 132 franchises | $602K – $1.6M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 132 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+32 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for FIVE GUYS franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
74 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
1,554 franchisee contacts on file from official FDD filings.
1,554 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a FIVE GUYS franchise ranges from $977,850 to $1,375,750. This includes a franchise fee of $25,000. Ongoing royalty fees are 6.0% of gross sales.
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